- The Yakity Yak
- Posts
- "Yak-onomics" - Herding Dollars in Private Practice
"Yak-onomics" - Herding Dollars in Private Practice
Retirement has to become real eventually....
Welcome to Yakity Yak, your weekly boost for a smoother, more efficient practice.
At Practice Yak, we’re dedicated to helping therapists and mental health professionals streamline the administrative side of their work, so they can focus on what matters most: client care. Our tools and tips aim to simplify billing, scheduling, and everyday admin tasks, providing therapists with a better way to manage their practices and find balance. We’re here to support you in building a thriving, less-stressful business!
We are trying out a new format this week, called" “Yak-onomics”. The goal is to break out parts of running a therapy practice, both individual practices and group practices and discuss.
Sooo….. if there are any topics you want to discuss —> send them our way.
Yak-onomics 101
According to the Heard 2024 Financial State of Private Practice — about 70% of practitioners gross less than $100k a year and over 89% say they net less than $100k per year.
Over the next few weeks we will be analyzing those numbers and dissecting the Heard report. In the future we will also be analyzing what makes the difference and eclipsing the 100k mark.
Trends - Telehealth
Telehealth continues to reshape the mental health field, making therapy more accessible than ever. This trend has surged post-pandemic, with more clients preferring the flexibility and convenience it offers. Here’s a quick look at what’s happening in telehealth right now:
Client Demand: Telehealth remains a popular option, with over half of clients preferring virtual sessions at least part of the time. This makes it a valuable offering for practices looking to boost accessibility and expand their client base.
Insurance Coverage: Many states and insurance companies are expanding telehealth coverage, though policies vary widely. Staying informed on state mandates and insurance updates is crucial for billing.
Hybrid Practice Models: A mix of in-person and telehealth sessions is emerging as the ideal setup for many clients and therapists, allowing flexibility while still fostering in-person connection when needed.
51% of practitioners exclusively see clients from their home office according to Heard 2024 Financial State of Private Practice
Licensing Across States: State licensing restrictions are evolving, with some states forming compacts that allow therapists to serve clients in multiple states via telehealth. Keeping track of your state’s licensing regulations is essential if you’re considering a broader client reach.
Platform Innovation: New telehealth platforms are improving with features like secure messaging, virtual waiting rooms, and billing integration. With so many options, it’s worth exploring which platform aligns best with your practice's needs and budget.
Case Study
Coming Soon…
We currently do not have any case studies but the hope is there will be new and cutting edge practices doing new stuff that we can analyze here.
Gif by spotify on Giphy
Tools and Tips
HIPAA- Compliant Teleheatlh Platforms
Offers a free plan and is popular with therapists for its simplicity.
Provides waiting rooms, screen sharing, and is easy to set up.
A comprehensive practice management tool with telehealth capabilities.
Offers billing, scheduling, and note-taking features integrated with video calls.
HIPAA-compliant telehealth with integrated practice management.
Includes client notes, scheduling, and billing, making it an all-in-one option.
Zoom for Healthcare
A version of Zoom with additional security measures to comply with HIPAA.
Offers high-quality video and an easy-to-use interface, but at a premium cost.
Provides email encryption that integrates with platforms like Gmail and Outlook.
Simple setup for small practices, ensuring confidential communication with clients.
Yak to Yak - Q&A
What is the difference between the SEP IRA and the Solo 401k and what is best for an individual practice or a group practice?
We are still researching the best options (so TBD) but this is what we have found so far. We need to re-iterate this is not financial advice.
Both the SEP IRA and Solo 401(k) are plans designed for self-employed individuals and small business owners. The main difference lies in their contribution limits and flexibility.
The SEP IRA allows only employer contributions, while the Solo 401(k) offers both employer and employee contributions, allowing for potentially higher total contributions. Additionally, Solo 401(k) plans may include a Roth option, allowing for after-tax contributions, whereas the SEP IRA does not.
SEP IRA | Solo 401k | |
|---|---|---|
Best for | Self employed individuals with few or no employees | Self employed individuals with no employees (only a spouse) that want a higher contribution limit |
Contribution Limits 2024 | Employer only of up to 25% of net earnings not greater than $69,000 | Employee deferral of $23,000 plus 25% of net earnings up to $69,000 total |
Setup | Simple to set up, minimal maintenance; no IRS filings required. | More complex setup; IRS Form 5500 required if plan assets exceed $250,000. |
Administrative Support Options | Can be set up and managed through services like Carry.com or Solo401k.com for additional support and ease. |
P.S. If you have any topic you want to yak about, reply to this email and I will do the research and include in the next the Yakity Yak!
P.P.S. - If you want to contribute a post reply, and we can get you plugged in!
Head Yak Out
Get in Touch:
Have any questions or need immediate assistance? Don’t hesitate to reach out to me at [email protected]. We’re here to help you succeed!
Practice Yak - We’re excited to be a part of your journey to a more efficient and successful practice.
We receive commission on purchases made through links in this email.
Best regards,
Lane
Instagram